Castle Hills sets Nov. 5 bond vote

Published 3:58 pm, Tuesday, August 27, 2013

Castle Hills voters will head to the polls Nov. 5 after all to decide the fate of a $13 million bond designed to fund citywide road and drainage repairs.

City Council Aug. 22 unanimously approved setting the special election. Monday was the state deadline for a local government to set a Nov. 5 election.

The city's financial advisory firm, FirstSouthwest, recommended that, if voters were to approve the bond, the city could consider a property tax rate increase of up to 21.9 cents.

“My goal of calling an election, to have our citizens vote on this most important issue, was fulfilled by City Council last night,” Mayor Bruce Smiley-Kaliff told a reporter Friday. “We can't keep kicking this can down the road.”

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The Aug. 22 meeting was a do-over of sorts. Councilman Michael Catalani's call for a Nov. 5 bond vote went unsupported by colleagues at the Aug. 13 regular council meeting.

Some residents and council members had expressed concern about pre-election public input, and the potential tax hike's impact.

Last week, council listened to a presentation from FirstSouthwest representative Anne Burger Entrekin about bond financing, and a briefing by bond counsel Tom Spurgeon.

City engineer David Givler also spoke, saying that further delaying citywide infrastructure improvements could end up costing the city more money in repairs down the line.

Givler previously surveyed city roads and drainage ways, but rechecked conditions particularly in neighborhoods hit hard by the May storms and flood.

Givler told council it would take $47.9 million for a citywide improvement program to begin in 2014. Such repairs would vary from crack-sealing to major road and drainage channel reconstruction.

Givler suggested the city implement improvements in phases. He recommended Phase I involve $13 million in work on more than 5 miles of roads and drainage ways between West Avenue, Northwest Military Highway and Loop 410.

“Roads are deteriorating at a rate of $2.5 million a year (if you) do nothing — 10 times what normal maintenance should cost,” Givler said.

“Waiting isn't free. Waiting costs money,” he noted. “Now that doesn't mean you should be pressured into do something, but it means we all should carefully consider these issues.”

The mayor and City Manager Rita Hoyl, speaking with a reporter Friday, echoed Entrekin's remarks to council that the preliminary projected 22-cent tax increase is subject to the market interest rate at the time of an approved bond sale.

“At this time, (FirstSouthwest's) analysis assumes the bonds would be issued in one installment,” Hoyl told a reporter.

“However, the market conditions at the time of issuance may guide them to make a different recommendation in order to achieve a lower cost of funds.”

Smiley-Kaliff said Friday that the first collection of funds from a tax levy, with bond approval, wouldn't happen until 2015.

He added the duration of Phase 1 projects would give residents and city officials time to map out what should happen with bond-funded improvements elsewhere in town.

The city will host pre-election public hearings so residents may review bond proposal details, he noted, adding the city will prepare a factual flyer for public distribution.

But several residents at the meeting said that, while repairs are needed, a fall bond election feels like a rush to judgment.

“I'm opposed to an election because I don't think there's been enough information, and I think you'll fail. You should put it on the May ballot,” said former Mayor Bob Anderson.

“Do we need street repairs? Absolutely yes. Do we need a bond election in November? Absolutely not. We need more transparency,” added former Councilman Steve McGuire.

He and recent council candidate John Kenny, among other residents, urged council to seek out viable alternative funding sources for infrastructure improvements.

Former Councilman Douglas Gregory stressed the importance of transparency, accountability and due diligence before considering a bond election.

Other residents, such as Paul Bartlett, pushed for a November vote, citing escalating project costs.

Hearing many of the audience members' worries aired Aug. 22, Councilman John Squire moved for a May bond election. His motion failed by a 3-2 vote. Council then moved for the November election.

“We will get our streets done, but how will we get them done? Are we going to go forward with a total tax package or with other sources of funding?” Councilman Tim Howell asked rhetorically.

“We are committed. There's no question. How are we going to get there is the question.”